IDEAS home Printed from https://ideas.repec.org/a/taf/jenpmg/v42y1999i1p23-43.html
   My bibliography  Save this article

Estimating the Benefits of Agri-environmental Policy: Econometric Issues in Open-ended Contingent Valuation Studies

Author

Listed:
  • Begona Alvarez-Farizo

Abstract

This paper reports on an open-ended Contingent Valuation Method study of the conservation benefits of Environmentally Sensitive Areas (ESAs) in Scotland. The ESA scheme is a central component of agri-environmental policy in the UK, and an interesting policy question concerns the extent of non-market benefits generated by such ESAs. The econometric issues we raise in this paper revolve around bid curves. Bid curves are estimated in open-ended Contingent Valuation Method (CVM) studies for three reasons. These are: (1) as a test of theoretical validity; (2) as a test of discriminant validity; and (3) as a means of benefits transfer. Within the first and last of these aims, the partial relationship between willingness to pay (WTP) and independent variables such as income is of interest. There are several econometric issues involved in estimating such relationships, First, the selection process implicit in obtaining positive WTP bids should be explicitly modelled. Second, many CVM surveys suffer from item non-response with respect to 'sensitive' questions such as the respondent's income; these non-responses may be non-random in nature. Finally, it is possible to dis-aggregate the effect of marginal changes in, say, income on WTP into two elements, namely: an effect on the probability that the individual will be willing to pay something; and secondly, an effect on how much they are willing to pay.

Suggested Citation

  • Begona Alvarez-Farizo, 1999. "Estimating the Benefits of Agri-environmental Policy: Econometric Issues in Open-ended Contingent Valuation Studies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(1), pages 23-43.
  • Handle: RePEc:taf:jenpmg:v:42:y:1999:i:1:p:23-43
    DOI: 10.1080/09640569911280
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09640569911280
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nick Hanley & Douglas MacMillan, 2000. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland: Reply," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 129-132.
    2. Pavel CIAIAN & Sergio GOMEZ y PALOMA, 2011. "The Value of EU Agricultural Landscape," JRC Working Papers JRC65456, Joint Research Centre (Seville site).
    3. Stithou, Mavra, 2009. "Respondent Certainty and Payment Vehicle Effect in Contingent Valuation: an Empirical Study for the Conservation of Two Endangered Species in Zakynthos Island, Greece," Stirling Economics Discussion Papers 2009-21, University of Stirling, Division of Economics.
    4. Stephen Hynes & Eoghan Garvey, 2009. "Modelling Farmers' Participation in an Agri-environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 546-562.
    5. Guo, Zhan & McDonnell, Simon, 2013. "Curb parking pricing for local residents: An exploration in New York City based on willingness to pay," Transport Policy, Elsevier, vol. 30(C), pages 186-198.
    6. Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
    7. Godwin Kofi Vondolia & Håkan Eggert & Ståle Navrud & Jesper Stage, 2014. "What do respondents bring to contingent valuation? A comparison of monetary and labour payment vehicles," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(3), pages 253-267, November.
    8. Stephen Hynes & Brian Cahill & Emma J. Dillon & Thia Hennessy & Eoghan Garvey, 2007. "A Panel Data Random Effects Model of Agri-Environment Programme Participation," Working Papers 0708, Rural Economy and Development Programme,Teagasc.
    9. Žáková Kroupová, Zdenka & Havlíková, M. & Hálová, P. & Malý, M., 2016. "Economic Valuation of Mountain Landscapes and Ecosystems: A Meta-Analysis of Case Studies," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(3), September.
    10. Shi, Lijia & Gao, Zhifeng & Chen, Xuqi, 2014. "The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation," Food Policy, Elsevier, vol. 46(C), pages 13-21.
    11. Kenyon, Wendy & Nevin, Ceara, 2001. "The use of economic and participatory approaches to assess forest development: a case study in the Ettrick Valley," Forest Policy and Economics, Elsevier, vol. 3(1-2), pages 69-80, September.
    12. Sun, Chuanwang & Yuan, Xiang & Yao, Xin, 2016. "Social acceptance towards the air pollution in China: Evidence from public's willingness to pay for smog mitigation," Energy Policy, Elsevier, vol. 92(C), pages 313-324.
    13. Desvousges, William & Mathews, Kristy & Train, Kenneth, 2012. "Adequate responsiveness to scope in contingent valuation," Ecological Economics, Elsevier, vol. 84(C), pages 121-128.
    14. Godwin Kofi Vondolia & Håkan Eggert & Ståle Navrud & Jesper Stage, 2014. "What do respondents bring to contingent valuation? A comparison of monetary and labour payment vehicles," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(3), pages 253-267, November.
    15. William Fonta & Hyacinth Ichoku & Kanayo Ogujiuba, 2010. "Estimating willingness to pay with the stochastic payment card design: further evidence from rural Cameroon," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(2), pages 179-193, April.
    16. Jung A Lee & Jinhyung Chon & Changwoo Ahn, 2014. "Planning Landscape Corridors in Ecological Infrastructure Using Least-Cost Path Methods Based on the Value of Ecosystem Services," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-22, October.
    17. Kiran Krishnamurthy, Chandra & Kriström, Bengt, 2013. "Determinants of the price-premium for Green Energy: Evidence from an OECD cross-section," CERE Working Papers 2013:7, CERE - the Center for Environmental and Resource Economics, revised 30 Jun 2014.
    18. Idda, Lorenzo & Benedetto, Graziella & Madau, Fabio A. & Orru, Elia & Pulina, Pietro, 2005. "The Structure of Rural Landscape in Monetary Evaluation Studies: Main Analytical Approaches in Literature," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24549, European Association of Agricultural Economists.
    19. Maria Ana Odejar & Kostas Mavromaras & Mandy Ryan, 2004. "Messy Data Modelling in Health Care Contingent Valuation Studies," Econometric Society 2004 North American Summer Meetings 406, Econometric Society.
    20. Chandra Kiran B. Krishnamurthy & Bengt Kriström, 2016. "Determinants of the Price-Premium for Green Energy: Evidence from an OECD Cross-Section," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(2), pages 173-204, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jenpmg:v:42:y:1999:i:1:p:23-43. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CJEP20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.